Why More Australians Are Choosing Mortgage Brokers Than Ever Before

The Australian mortgage landscape has undergone a remarkable transformation. In what represents a watershed moment for the industry, mortgage brokers now arrange three-quarters of all new home loans in Australia, a figure that continues to climb year after year.

This reflects a fundamental shift in how Australians approach one of the most significant financial decisions of their lives: securing a home loan.

Record Market Share Signals Consumer Confidence

The numbers tell a compelling story. In the December 2024 quarter, mortgage brokers originated 76% of all new home loans, which is the highest market share ever recorded. This represents a steady climb from 74.6% in September 2024 and marks a dramatic increase from just 57.5% when the best interests duty was introduced in 2021.

What makes this growth even more significant is that it’s occurring during one of the most challenging economic periods in recent memory. With interest rates at elevated levels and cost-of-living pressures mounting, Australians are increasingly turning to brokers to help them navigate complex lending decisions.

The value of loans written by brokers has also reached unprecedented heights, hitting $103.2 billion in the September quarter alone – an increase of more than 10% compared to the same period the previous year.

The Economic Powerhouse Behind the Numbers

A landmark report released by the Mortgage and Finance Association of Australia (MFAA) in February 2025 has quantified just how valuable the broker channel has become to the Australian economy. Prepared by Deloitte and drawing on responses from nearly 900 brokers, the research reveals that mortgage and finance brokers contribute $4.1 billion in gross value to the Australian economy each year.

This economic contribution breaks down into $3.3 billion in direct value and $800 million in indirect value, representing a 14% increase from the previous report when adjusted for inflation.

The industry directly employs an estimated 31,899 people across Australia, with another 5,450 jobs indirectly supported. As of March 2024, there were 22,031 brokers operating nationwide, which is a 29% increase from 2017.

Why Consumers Choose Brokers

The primary driver behind this growth is straightforward: choice. When you walk into a bank, you’ll hear about that bank’s products. When you work with a mortgage broker, you gain access to a comparison of home loan products from a range of lenders.

This matters more than many people realise. The Australian Competition and Consumer Commission‘s most recent home loans inquiry found that borrowers with home loans between three and five years old paid, on average, 0.58 percentage points more in interest than those taking out new loans. Over the life of a typical mortgage, this difference can amount to tens of thousands of dollars.

Brokers are helping consumers capture these savings. According to the Deloitte report, brokers achieve an average interest rate reduction of 0.35% by successfully repricing their clients’ loans. They’re also spending more time educating customers, dedicating 11% of their working hours to helping borrowers understand the loan process and their options.

Supporting First Home Buyers

Perhaps nowhere is the value of brokers more evident than in their work with first-home buyers. The proportion of first home buyer loans that brokers write has nearly doubled since 2018, from 23% to 45% of owner-occupier customers.

This is particularly noteworthy because first home buyers represent only about a quarter of the overall home loan market. Brokers are clearly providing a disproportionately high level of support to those just embarking on their home ownership journey, precisely the group that most needs expert guidance through what can be an overwhelming process.

With 85% of surveyed brokers holding qualifications at Diploma level or above, and 56% having more than five years of experience, the industry is well-equipped to provide this guidance. On average, brokers are accredited with 23 different lenders and typically present three loan options to each customer.

The Best Interests Duty Effect

One of the most significant regulatory changes in recent years was the introduction of the best interests duty (BID) in January 2021, which came out of recommendations from the Banking Royal Commission. The duty requires brokers to act in their clients’ best interests when providing credit assistance.

Far from hampering the industry, BID appears to have strengthened it. According to the MFAA report, 56% of brokers said the changes had improved trust in the sector, ten times as many as those who reported a negative impact on their business. Some brokers even noted that the financial performance of their business had improved since the regulatory changes were implemented.

This positive reception makes sense when you consider that the best interests duty formalised what many brokers were already doing: putting their clients first. The steady increase in market share since BID’s introduction, from 57.5% to 76%, suggests that consumers recognise and value this commitment.

Beyond Residential Lending

While residential home loans remain the core of the broker channel, the industry is expanding into other areas. According to aggregators, commercial and asset finance volumes have grown by 20% or more. 13% of broker respondents in the Deloitte survey identified as commercially focused, writing 25% or more commercial loans in the 2024 financial year.

This diversification reflects the evolving needs of Australian consumers and businesses, and brokers’ ability to adapt and provide comprehensive financial solutions beyond traditional home lending.

The Relationship Advantage

One of the most valuable insights from the research is the importance of relationships in the broker model. Repeat customers account for 44% of broker business, while referrals generate another 28%. Combined, these relationship-based sources represent nearly three-quarters of broker leads.

This stands in stark contrast to the transactional nature of much traditional banking. Brokers maintain ongoing relationships with their clients, providing proactive and personalised communications throughout the life of the loan.

This relationship focus also explains why refinancing through a broker makes sense for many homeowners. Lenders often reserve their best deals for new customers, meaning existing borrowers can find themselves paying significantly more than they need to. A broker who maintains an ongoing relationship with their clients can identify these opportunities and help them switch to more competitive products.

Technology and the Future

The broker channel has evolved. Brokers now conduct three times more communication on digital platforms than they did in 2018, enabling them to reach a wider customer base and provide more responsive service.

This technological adoption has been critical in allowing the industry to scale while maintaining the personalised service that consumers value. It’s also positioned brokers well for the future, as digital-native younger generations enter the property market.

What This Means for You

If you’re considering buying a home or refinancing your existing loan, the data suggests you’re likely to benefit from working with a mortgage broker. With access to multiple lenders, the ability to negotiate better rates, and a duty to act in your best interests, brokers offer a level of service and value that’s increasingly difficult to match through traditional channels.

The record market share figures represent millions of Australians who’ve found value in the broker model. Whether you’re a first-home buyer navigating the market for the first time or an experienced property owner looking to ensure you’re getting the best deal, a conversation with a broker could potentially save you thousands of dollars over the life of your loan.

At Peel Finance Brokers, we’re proud to be part of an industry that’s delivering real value to Australian consumers. If you’d like to explore your options or discuss how we might be able to help you achieve your financial goals, we’d be happy to have a conversation. Contact us today to arrange a free consultation.

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